Federal prosecutors in Boston have begun a criminal investigation into the parent company of Holy Family Hospital in Methuen and Haverhill.
CBS News, citing two people familiar with the matter, said U.S. Attorney Joshua S. Levy’s office is investigating Steward Health Care on allegations of fraud and violations of the Foreign Corrupt Practices Act. According to the U.S. Justice Department, the Foreign Corrupt Practices Act of 1977 prohibits bribing foreign officials for business favors.
CBS News investigative reporter Michael Kaplan says the company had no comment.
“They previously told us that they always put patients first and said that they deny there are any other considerations, i.e., profits, that go ahead of that. They also say it’s a challenging healthcare environment and they’ve done everything they could to operate to the best of their ability,” Kaplan reported.
CBS reported, in addition to its U.S. properties, a deal by Steward to operate three state-owned hospitals in Malta is at the center of a corruption probe in that country. Reacting to the report, Sen. Edward J. Markey said he will introduce legislation that creates “guardrails that protect communities from the risk of harm that corporate greed inflicts.”
“Instead of embracing the obligation to provide safe, high-quality care to people and communities, too many greedy CEOs view the health care system as their piggy bank,” said Markey. “Led by Dr. Ralph de la Torre, Steward is just the latest example of corporate greed endangering our health system. Whether in Massachusetts or Malta, Dr. de la Torre used his credentials as a physician and CEO to sell Steward as a health care savior. Instead, he and his corporate enablers in private equity and real estate hollowed out a health system as they lined their pockets. Steward must be investigated, and I hope the company and the corporate executives who facilitated Steward’s actions face consequences that reflect the lives, livelihoods, safety, and security that they stole from communities.”
WHAV is a CBS News affiliate.